Much of the company's success has stemmed from its appeal to
budget-conscious women in their teens and 20s.

So how are they able to make and sell their clothing so cheaply?

1. Cheap labor

A recent class-action lawsuit claims that many of the chain's
in-store employees are minimum-wage high-school workers, who
don't understand their employee rights. The suit alleges that the
company "systematically failed to pay them for hours worked,"
making them work off the clock and denying meal breaks, according
to a Huffington Post report.

Forever 21's factories attract an unusual number of labor
complaints, labor expert Robert Ross of Clark University told
Business Insider. Moreover, the company
is unique in that allegations have stemmed from factories near
its corporate headquarters, whereas most retail industry labor
allegations stem from subcontractor factories overseas.

"Nobody in the world is making a living if a retailer is selling
$10 jeans," Ross said.

This fall, the International Labor Rights Forum
called out Forever 21 for not joining retailers like Gap Inc., Levi Strauss, American Eagle
Outfitters and other companies in making a commitment not to buy
cotton from Uzbekistan factories, where alleged forced child
labor takes place.

Forever 21 has faced
more than 50 copyright lawsuits for allegedly stealing the
work of designers, ranging from Anna Sui to smaller independent
designers like Trovata, most of which have been settled out of
court, according to a Jezebel report.

Legal expert Susan Scafidi told Jezebel that lawsuits are
an expected part of the business model: "I realized that
they've been caught so many times, they've been publicly exposed
so many times, they've even been sued — although many fewer
times, because all they do is settle — and the light bulb went
off: This is just part of their business strategy. They go ahead
and they take what they want, and when they get caught, they pay
up. It's probably cheaper than licensing it in the first place."

Forever 21's product may not hold up as well as premium designer
brands, but it looks good enough for young women around the
world.